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SMALL BUSINESS ADMINISTRATION
39.00

Federal Funds
General and special funds:
SALARIES

AND

EXPENSES

For necessary expenses, not otherwise provided for, of the Small
Business Administration as authorized by Public Law 101–574, including hire of passenger motor vehicles as authorized by 31 U.S.C.
1343 and 1344, and not to exceed $3,500 for official reception and
representation expenses, ø$258,175,000 of which $15,000,000 shall
be available to implement section 24 of the Small Business Act as
amended, including $500,000 to be made available only to the City
of Buffalo, New York: Provided, That section 24(e) of the Small Business Act (15 U.S.C. 651(e)) is amended by striking ‘‘fiscal years 1992
through 1994’’ and inserting in lieu thereof ‘‘fiscal years 1995 through
1997’’: Provided further, That section 112(c)(2) of the Small Business
Administration Reauthorization and Amendment Act of 1988 (102
Stat. 2996) is amended by striking ‘‘October 1, 1994’’ and inserting
‘‘October 1, 1997’’¿ $263,958,000: Provided further, That the Administrator is authorized to charge fees to cover the cost of publications
developed by the Small Business Administrationø;¿ , and certain
loan servicing activitiesø; and installing and servicing the agency’s
computer-based electronic bulletin board¿: Provided further, That notwithstanding 31 U.S.C. 3302, revenues received from all such activities shall be credited to this account, to be available for carrying
out these purposes without further appropriations. Of the total
amount appropriated in this paragraph, ø$77,375,000¿ $74,000,000
shall be available for grants for performance in fiscal year ø1995¿
1996 or fiscal year ø1996¿ 1997 for Small Business Development
Centers as authorized by section 21 of the Small Business Act, as
amended, øof which $3,375,000 shall be available to carry out Defense
economic transition technical assistance as authorized by 15 U.S.C.
648(c)(3)(G)¿: Provided further, That not more than $500,000 of the
total amount in this paragraph shall be available to pay the expenses
of the National Small Business Development Center Advisory Board
and to reimburse Centers for participating in evaluations as provided
in section 20(a) of such Act, and to maintain a clearinghouse as
provided in section 21(g)(2) of such Act.
øNone of the funds appropriated for the Small Business Administration under this Act may be used to impose any new or increased
user fee or management assistance fee for the Small Business Development Center Program.¿ (Departments of Commerce, Justice, and
State, the Judiciary, and Related Agencies Appropriations Act, 1995.)
Program and Financing (in thousands of dollars)
Identification code 73–0100–0–1–376

Program by activities:
00.01 Government Contracting and Minority Enterprise Development ..................................................................
00.02 Disaster assistance .......................................................
00.03 Economic development ..................................................
00.04 CFO/Management and administration ...........................
00.05 Executive direction .........................................................
00.06 General Counsel .............................................................
00.07 Congressional and legislative affairs ...........................
00.08 Hearings and appeals ...................................................
00.09 Communications and Publications ................................
00.10 National Advisory Council ..............................................
00.11 Advocacy ........................................................................
00.12 Field Operations .............................................................
00.13 Equal Employment Opportunity and Civil Rights Compliance .......................................................................
00.14 Regional and District Offices ........................................
10.00

Total obligations ........................................................

Financing:
21.40 Unobligated balance available, start of year: Treasury
balance ......................................................................
24.40 Unobligated balance available, end of year: Treasury
balance ......................................................................
25.00 Unobligated balance expiring ........................................

1994 actual

1995 est.

1996 est.

54,629
49,200
32,839
189,619
165,774
20,163
107,213
131,308
126,820
70,328
88,377
99,215
2,067
1,677
1,683
3,634
3,818
4,119
821
798
855
791
856
580
2,920
2,008
1,917
42 ................... ...................
6,090
8,209
6,073
866
993
1,285
2,379
141,865

2,363
141,589

1,867
150,092

583,264

596,970

447,508

–4,071

–32,966 ...................

32,966 ................... ...................
10,679 ................... ...................

40.00
40.75
43.00
68.00

Budget authority (gross) ...........................................

622,838

564,004

447,508

Budget authority:
Current:
Appropriation .........................................................
258,900
Procurement reduction pursuant to P.L. 103–
317 ................................................................... ...................

258,175

263,958

Appropriation (total) .........................................
Permanent:
Spending authority from offsetting collections

–1,021 ...................

258,900

257,154

263,958

363,938

306,850

183,550

Relation of obligations to outlays:
Total obligations ............................................................
583,264
596,970
447,508
Obligated balance, start of year:
72.10
Receivables from other government accounts .......... ................... ................... ...................
72.40
Unpaid obligations: Treasury balance ......................
157,438
135,348
105,127
Obligated balance, end of year:
74.10
Receivables from other government accounts .......... ................... ................... ...................
74.40
Unpaid obligations: Treasury balance ......................
–135,348
–105,127
–105,127
71.00

87.00

Outlays (gross) ..........................................................

605,354

627,191

447,508

Adjustments to gross budget authority and outlays:
Offsetting collections from:
Federal sources:
88.00
Payments from business loan program account
–94,976
88.00
Payments for disaster loan program account ......
–268,962
88.40
Non-Federal sources .................................................. ...................

–97,000
–200,500
–9,350

–99,910
–80,340
–3,300

88.90

Total, offsetting collections ..................................

–363,938

–306,850

–183,550

89.00
90.00

Budget authority (net) ...................................................
Outlays (net) ..................................................................

258,900
241,416

257,154
320,341

263,958
263,958

1995 est.
257,154
320,341

1996 est.
263,958
263,958

........................ ........................
........................ ........................

–9,000
–9,000

Summary of Budget Authority and Outlays
(in thousands of dollars)

Enacted/requested:
Budget Authority .....................................................................
Outlays ....................................................................................
Legislative proposal, not subject to PAYGO:
Budget Authority .....................................................................
Outlays ....................................................................................
Legislative proposal, subject to PAYGO:
Budget Authority .....................................................................
Outlays ....................................................................................
Rescission proposal:
Budget Authority .....................................................................
Outlays ....................................................................................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

1994 actual
258,900
241,416

........................ ........................ ........................
........................ ........................ ........................
........................
........................

258,900
241,416

–15,000 ........................
–11,925
–3,075

242,154
308,416

254,958
251,883

The Small Business Administration (SBA) provides assistance to small businesses and to victims of physical disasters.
These efforts are conducted through the following activities:
Economic Development.—The Associate Deputy Administrator for this function exercises direction over Financial
Assistance, Surety Guarantees, Investment, International
Trade, Women’s Business Ownership, Small Business Development Centers (SBDC), Veteran’s Affairs, and Business
Initiatives, which includes the Service Corps of Retired Executives (SCORE) and the Small Business Institutes (SBI).
These offices are responsible for the administration of all
SBA finance and business assistance programs. In 1996,
SBA plans to continue providing management training and
tools for the small business community through Export Assistance Centers, Empowerment Zone One Stop Capital
Shops, and Business Information Centers. In addition,

919

920

THE BUDGET FOR FISCAL YEAR 1996

Federal Funds—Continued

General and special funds—Continued
SALARIES

AND

EXPENSES—Continued

through new programs such as LowDoc and Small Loan
Express, SBA has begun targeting financial assistance to
segments of the population that have historically been
under represented in SBA’s credit programs. SBA’s efforts
to reduce unnecessary paperwork and make the agency
more customer-friendly has attracted new banks interested
in establishing partnerships with SBA.
Government Contracting and Minority Enterprise Development.—The Associate Deputy Administrator for this function exercises direction over Government Contracting, Minority Enterprise Development, Technology, Native American Affairs, and Size Standards. These offices are responsible for effectively advocating for small businesses in the
area of government contracting. Government Contracting
activities are aimed at ensuring that small businesses receive a fair share of government contracts. The Minority
Enterprise Development programs provide assistance to minority small business concerns, primarily in the area of
Federal procurement. Through this office, SBA assists in
the establishment or expansion of firms that are owned
by minority or other disadvantaged business persons and
that have the potential to develop into viable competitive
businesses in a reasonable period of time. the Minority
Enterprise Development office also evaluates the overall
agency performance in promoting minority business development.
Disaster Assistance.—The Associate Administrator for the
Office of Disaster Assistance oversees the Disaster Loan
Program, which provides physical disaster loans to individuals and businesses of any size, and economic injury loans
to small businesses without credit available elsewhere. In
addition to Presidentially-declared disasters, the program
provides loans when a declaration is made by the SBA
Administrator. Program eligibility is based on financial criteria, and interest rates are set according to statutory formulas. In recent years, the average interest rate on disaster
loans has been about four percent. The budget proposes
to reduce the cost of disaster loan subsidies by increasing
the interest rate on disaster loans to Treasury’s cost of
borrowing plus two percent.
Advocacy.—This office is responsible for the development
and implementation of a Small Business Administration
Advocacy program. Activities include the representation of
small business interests, the analysis of the effects of federal law and regulation on small business, the development
and utilization of a small business data base to aid in
this analysis, and liaison with small business and small
business organizations and the public.
1996 Proposals.—The budget proposes moderate funding
increases for a number of SBA’s non-credit initiatives, including U.S. Export Assistance Centers, Micro Loan Technical Assistance, and One Stop Capital Shops located in
Empowerment Zones. The budget also proposes full funding
for Small Business Development Centers (SBDC) and the
Service Corps of Retired Executives (SCORE) program. In
addition, the budget includes funding for financial management system improvements and upgrades which SBA vitally
needs to keep pace with the recent growth in their loan
programs.
Object Classification (in thousands of dollars)
Identification code 73–0100–0–1–376

1994 actual

1995 est.

1996 est.

11.1
11.3
11.5

Personnel compensation:
Full-time permanent ......................................................
Other than full-time permanent ....................................
Other personnel compensation ......................................

158,749
6,069
2,378

164,000
6,000
1,820

169,000
6,000
1,835

11.9

Total personnel compensation ..................................

167,196

171,820

176,835

12.1
21.0
22.0
23.1
23.2
23.3
24.0
25.2
26.0
31.0
41.0
92.0

Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Transportation of things ................................................
Rental payments to GSA ................................................
Rental payments to others ............................................
Communications, utilities, and miscellaneous charges
Printing and reproduction ..............................................
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................
Grants, subsidies, and contributions ............................
Undistributed (disaster assistance) ..............................

99.9

Total obligations ........................................................

36,057
36,615
38,665
5,528
7,374
7,578
395
339
343
27,189
31,040
34,092
270 ................... ...................
11,560
14,390
15,999
1,577
1,908
2,154
22,807
29,284
32,348
2,556
2,251
2,299
2,868
992
1,689
115,642
135,183
115,343
189,619
165,774
20,163
583,264

596,970

447,508

Personnel Summary
1994 actual

Identification code 73–0100–0–1–376

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1995 est.

6,241

5,986

1996 est.

4,664

Note.—The personnel summary includes regular (non-disaster) full-time equivalents (FTEs) of 3,719, 3,750, and
3,780 in 1994, 1995, and 1996, respectively.

SALARIES

AND

EXPENSES

(Legislative proposal, not subject to PAYGO)
Program and Financing (in thousands of dollars)
1994 actual

Identification code 73–0100–2–1–376

1995 est.

1996 est.

Program by activities:
Total obligations (object class 25.2) ............................ ................... ...................

–9,000

Financing:
40.00 Budget authority (appropriation) ................................... ................... ...................

–9,000

71.00

Relation of obligations to outlays:
Total obligations ............................................................ ................... ...................

–9,000

90.00

Outlays ....................................................................... ................... ...................

–9,000

10.00

The schedule above shows the change to SBA’s request
for general fund appropriations that would result if SBA is
given authority to establish a servicing fee. This fee is described further in the ‘‘Legislative proposal, subject to
PAYGO’’ schedule below.
SALARIES

AND

EXPENSES

(Legislative proposal, subject to PAYGO)
Program and Financing (in thousands of dollars)
Identification code 73–0100–4–1–376

10.00

1994 actual

1995 est.

Program by activities:
Total obligations (object class 25.2) ............................ ................... ...................

1996 est.

9,000

Financing:
39.00 Budget authority (gross) ................................................ ................... ...................
68.00 Budget authority (gross): Spending authority from offsetting collections ..................................................... ................... ...................

9,000

71.00

Relation of obligations to outlays:
Total obligations ............................................................ ................... ...................

9,000

87.00

Outlays (gross) .......................................................... ................... ...................

9,000

88.40

Adjustments to gross budget authority and outlays:
Offsetting collections from: Non-Federal sources ......... ................... ...................

–9,000

89.00
90.00

9,000

Budget authority (net) ................................................... ................... ................... ...................
Outlays (net) .................................................................. ................... ................... ...................

The 1996 Budget includes a servicing fee, consistent with
standard commercial practices, which will help recover direct
administrative expenses incurred by SBA to properly maintain and service its existing loan portfolio. This fee will be

SMALL BUSINESS ADMINISTRATION

921

Federal Funds—Continued

in lieu of, and not in addition to, fees authorized by section
5(b)(12) (A) and (B) of the Small Business Act. Approximately
$9 million will be generated in 1996 through the implementation of an up-front 1⁄8 percent servicing fee on the guaranteed
portion of loans made through the 7(a) General Business Loan
Guarantee program. In addition, SBA will continue to collect
SBIC and CDC servicing fees through its fiscal and transfer
agents.

22.0
23.2
24.0
25.2
26.0
31.0
92.0

Transportation of things ................................................
Rental payments to others ............................................
Printing and reproduction ..............................................
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................
Undistributed .................................................................

99.9

Total obligations ........................................................

12
10
11
3 ................... ...................
7
7
7
260
413
434
18
26
26
39
45
50
169
2,839 ...................
8,055

11,339

9,200

Personnel Summary
OFFICE

OF

INSPECTOR GENERAL

Identification code 73–0200–0–1–376

For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended (5 U.S.C. App. 1–11 as amended by Public Law 100–504),
ø$8,500,000¿ $9,200,000. (Departments of Commerce, Justice, and
State, the Judiciary, and Related Agencies Appropriations Act, 1995.)
Program and Financing (in thousands of dollars)
Identification code 73–0200–0–1–376

1994 actual

00.01
00.02
00.03
00.04

Program by activities:
Management and counsel .............................................
Audit ...............................................................................
Investigations .................................................................
Disaster ..........................................................................

1,353
3,003
3,530
169

10.00

Total obligations ........................................................

8,055

Budget authority ........................................................

40.00
42.00

Budget authority:
Appropriation .............................................................
Transferred from other accounts ..............................

43.00

Appropriation (total) .............................................

Relation of obligations to outlays:
Total obligations ............................................................
Obligated balance, start of year: Unpaid obligations:
Treasury balance .......................................................
74.40 Obligated balance, end of year: Unpaid obligations:
Treasury balance .......................................................
71.00
72.40

90.00

Outlays .......................................................................

1995 est.

103

104

1996 est.

102

1,437
1,634
3,260
3,473
3,803
4,093
2,839 ...................
11,339

SURETY BOND GUARANTEES REVOLVING FUND

1996 est.

9,200

For additional capital for the ‘‘Surety Bond Guarantees Revolving
Fund’’, authorized by the Small Business Investment Act, as amended, ø$5,369,000¿ $5,530,000, to remain available without fiscal year
limitation as authorized by 15 U.S.C. 631 note. (Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1995.)
Program and Financing (in thousands of dollars)
Identification code 73–4156–0–3–376

Program by activities:
Total obligations (object class 42.0) ............................

1995 est.

1996 est.

19,691

18,100

19,722

–1,013

–1,938

–3,907

10,462
8,500
9,200
500 ................... ...................

1,938

3,907

4,715

10,962

8,500

9,200

39.00

Budget authority (gross) ...........................................

20,616

20,069

20,530

8,055

11,339

9,200
40.00

7,000

5,369

5,530

1,021

958

2,986
68.00

Budget authority:
Current:
Appropriation .........................................................
Permanent:
Spending authority from offsetting collections

13,616

14,700

15,000

–958

–2,986

–3,217

8,118

9,311

8,969

71.00
72.90
74.90

Relation of obligations to outlays:
Total obligations ............................................................
Obligated balance, start of year: Fund balance ...........
Obligated balance, end of year: Fund balance .............

19,691
39,765
–38,535

18,100
38,535
–30,000

19,722
30,000
–25,000

87.00

Outlays (gross) ..........................................................

20,921

26,635

24,722

88.40

Adjustments to gross budget authority and outlays:
Offsetting collections from: Non-Federal sources .........

–13,616

–14,700

–15,000

89.00
90.00

Budget authority (net) ...................................................
Outlays (net) ..................................................................

7,000
7,304

5,369
11,935

5,530
9,722

8,500

9,200

Object Classification (in thousands of dollars)
1994 actual

1995 est.

1996 est.

Personnel compensation:
11.1 Full-time permanent ......................................................
6,130
11.3 Other than full-time permanent .................................... ...................
11.5 Other personnel compensation ......................................
1,124

6,069
145
274

6,522
152
288

11.9
12.1
21.0

6,488
1,161
350

6,962
1,343
367

Total personnel compensation ..................................
7,254
Civilian personnel benefits ............................................ ...................
Travel and transportation of persons ............................
293

10.00

1994 actual

Financing:
21.90 Unobligated balance available, start of year: Fund
balance ......................................................................
24.90 Unobligated balance available, end of year: Fund
balance ......................................................................

10,962

This appropriation provides agency-wide audit, investigative, and inspection/evaluative functions to identify and recommend corrections of management or program deficiencies
which may create conditions for fraud, waste, or abuse. The
audit function provides internal audit, external audit, and
inspection/evaluation oversight activities. Internal audits assess the general management and efficiency of SBA program
operations; external audits review all program participants
and their compliance with SBA regulations and procedural
requirements; and inspection/evaluations address specific requirements of program management and effectiveness. The
investigative function detects and investigates allegations of
illegal and improper activities involving agency personnel,
programs, and operations.

Identification code 73–0200–0–1–376

Total compensable workyears: Full-time equivalent
employment ...............................................................

1995 est.

Public enterprise funds:

Financing:
21.40 Unobligated balance available, start of year: Treasury
balance ...................................................................... ...................
–2,839 ...................
24.40 Unobligated balance available, end of year: Treasury
balance ......................................................................
2,839 ................... ...................
25.00 Unobligated balance expiring ........................................
68 ................... ...................
39.00

1001

1994 actual

Under this program, the Small Business Administration
guarantees a portion of the losses sustained by a surety company as a result of the issuance of a bid, payment, and/
or performance bond to a small business concern.
In 1996, the budget proposes a program level anticipated
to accommodate expected demand from the preferred surety
bond program authorized in P.L. 100–590. The SBA will continue to rely increasingly on preferred sureties to deliver this
program, with SBA oversight taking place through its headquarters office.
Bond Guarantees (in thousands of dollars)
1994 actual

SBA contingent liability for new bond guarantees .....................

$871,154

1995 est.

1996 est.

$1,449,000

$1,476,000

922

THE BUDGET FOR FISCAL YEAR 1996

Federal Funds—Continued

Public enterprise funds—Continued
SURETY BOND GUARANTEES REVOLVING FUND—Continued
Statement of Operations (in thousands of dollars)
1993 actual

1994 actual

0101
0102

Revenue ...................................................
Expense ....................................................

11,956
–37,532

13,616
–19,691

14,700
–18,100

15,000
–19,722

0109

Net loss ...............................................

–25,576

–6,075

–3,400

–4,722

Identification code 73–4156–0–3–376

1995 est.

1996 est.

Balance Sheet (in thousands of dollars)
Identification code 73–4156–0–3–376

ASSETS:
1101 Federal assets: Fund balances
with Treasury .......................
1206 Non-Federal assets: Receivables, net ............................
1801 Other Federal assets: Cash
and other monetary assets
1999

1993 actual

1994 actual

1995 est.

1996 est.

40,656

40,473

40,000

40,000

1,217

1,506

1,500

1,500

122 ...................... ...................... ......................

Total assets .........................
LIABILITIES:
2201 Non-Federal liabilities: Accounts payable ....................

41,995

41,979

41,500

41,500

40,801

40,041

41,000

41,000

2999

40,801

40,041

41,000

41,000

306,631

313,631

319,000

324,530

–305,619

–311,693

–318,500

–324,030

Total liabilities ....................
NET POSITION:
3100 Appropriated capital ................
3300 Cumulative results of operations ...................................
3999

Total net position ................

1,012

1,938

500

500

4999

Total liabilities and net position ...............................

41,813

41,979

41,500

41,500

Credit accounts:
BUSINESS LOANS PROGRAM ACCOUNT
For the cost of direct loans, ø$9,596,000¿ $12,428,000, and for
the cost of guaranteed loans, ø$278,305,000¿ $252,295,000, as authorized by 15 U.S.C. 631 note, of which ø$1,216,000¿ $1,700,000, to
be available until expended, shall be for the Microloan Guarantee
Program, and of which the following shall remain available until
September 30, ø1996: $15,990,000¿ 1997: $50,835,000 for the Small
Business Investment Company Debentures Programø; $7,398,000
for¿, the Specialized Small Business Investment Company
Programø;¿, and ø$20,457,000 for¿ the Small Business Investment
Company Participating Securities Programø, and of which
$30,000,000 shall be used to pre-pay the Federal Financing Bank
for debentures guaranteed by the Administration pursuant to section
503 of the Small Business Investment Act: Provided, That such costs,
including the cost of modifying such loans, shall be as defined in
section 502 of the Congressional Budget Act of 1974. In addition,
for expenses not otherwise provided for, of the Small Business Administration, $27,350,000 of which: $750,000 shall be available for a
grant to the North Carolina Biotechnology Center for a demonstration
project which would integrate small business formation and preparation of a biotechnology workforce; $500,000 shall be available for
continuation of a grant to the Van Emmons Population Marketing
Analysis Center, Towanda, Pennsylvania, for an integrated small
business data base to assist Appalachian Region small businesses;
$1,000,000 shall be available for continuation of a grant to the City
of Prestonsburg, Kentucky, for small business development assistance; $375,000 shall be available for a grant to the State of Nebraska
for establishing the Nebraska Micro Enterprise Initiative to include
a clearinghouse and training and counseling programs; $3,000,000
shall be available for continuation of a grant to the National Center
for Genome Resources in New Mexico to provide consulting assistance, information and related services to small businesses and for
related purposes; $1,000,000 shall be available for continuation of
a grant for the Genesis Small Business Incubator Facility, Fayetteville, Arkansas; $500,000 shall be available for a grant to an entity
in Bozeman, Montana, to establish a small business assistance center
to assist small businesses to qualify and participate in the Small
Business Innovation Research (SBIR) program; $1,000,000 shall be

available for continuation of a grant to the Center for Entrepreneurial
Opportunity in Greensburg, Pennsylvania, to provide for a small business consulting and assistance center for entrepreneurial opportunities; $1,500,000 for a grant to a consortium in Buffalo, New York,
to provide assistance to small businesses for technical improvement
of commercial industrial products; $250,000 shall be available for
a grant to the Western Massachusetts Enterprise Fund to expand
microlending to entrepreneurs and small businesses; $400,000 shall
be available for continuation of a grant to the State of Ohio, Department of Development, International Trade Division to assist small
businesses to expand export opportunities; $1,000,000 shall be available for continuation of a grant to assist the development of a small
business consulting, information and assistance center in Hazard,
Kentucky; $2,000,000 shall be available for continuation of a grant
to the WVHTC Foundation for build-out, equipment, and operations
costs for a small business incubator facility and for an outreach
grant program to assist small business economic development;
$125,000 shall be available for a grant to an organization in Bowling
Green, Kentucky, to establish a small business pilot program to convert municipal waste into a marketable product; $2,500,000 shall
be available for a grant to the City of Carbondale, Pennsylvania,
to establish and operate a small business incubator facility; $500,000
shall be available for continuation of a grant to the New York City
Public Library for construction and related costs for the Industry
and Business Library; $200,000 shall be available for continuation
of a grant to assist the Small Business Institute program of the
Small Business Administration to establish and operate a National
Data Center Small Business Institute program in Conway, Arkansas;
$4,000,000 shall be available for a grant to the Unified Technology
Center in Cleveland, Ohio, to assist small businesses in the design
of high quality environmentally sound processes; $1,250,000 shall
be available for a grant to the City of Whitesburg, Kentucky, to
develop and equip a facility to promote the development of small
businesses and enhance economic development; $2,500,000 shall be
available for a grant to the City of Wheeling, West Virginia, for
the Oglebay Small Business Rural Development Center; $1,000,000
shall be available for a grant for a Small Business Development
Institute in North Philadelphia, Pennsylvania, for a facility to assist
and train minority small businesses; $250,000 shall be available for
continuation of a grant to the City of Espanola, New Mexico, for
the second phase of the development of the Espanola Plaza project
to assist small businesses and enhance economic development;
$1,000,000 shall be available for a grant to North Central West
Virginia Community Action to establish a small business rural enterprise training institute and microloan demonstration program;
$500,000 shall be available for a grant to the Mississippi Delta Small
Business Technology Project, Little Rock, Arkansas, for technology
education for small business owners and employees; and $250,000
shall be available for a grant to establish a small business incubator
facility in West Charlotte, North Carolina¿.
In addition, for administrative expenses to carry out the direct
and guaranteed loan programs, ø$97,000,000¿ $99,910,000, which
may be transferred to and merged with the appropriations for Salaries and Expenses. (Departments of Commerce, Justice, and State,
the Judiciary, and Related Agencies Appropriations Act, 1995).
Program and Financing (in thousands of dollars)
Identification code 73–1154–0–1–376

00.01
00.02
00.03
00.04
00.09
10.00

1994 actual

Program by activities:
Direct loan subsidy ........................................................
13,993
Guaranteed loan subsidy ...............................................
209,397
Section 503 prepayments .............................................. ...................
Grants ............................................................................ ...................
Administrative expenses ................................................
94,737
Total obligations ........................................................

Financing:
21.90 Unobligated balance available, start of year: Fund
balance ......................................................................
24.90 Unobligated balance available, end of year: Fund
balance ......................................................................
25.00 Unobligated balance expiring ........................................
40.00

Budget authority (appropriation) ..............................

71.00
72.40

Relation of obligations to outlays:
Total obligations ............................................................
Obligated balance, start of year: Unpaid obligations:
Treasury balance .......................................................

1995 est.

1996 est.

14,965
12,428
268,836
252,295
30,000 ...................
27,350 ...................
97,000
99,910

318,127

438,151

364,633

–44,320

–25,900 ...................

25,900 ................... ...................
3,677 ................... ...................
303,384

412,251

364,633

318,127

438,151

364,633

168,795

147,173

157,413

SMALL BUSINESS ADMINISTRATION
74.40
90.00

923

Federal Funds—Continued

Obligated balance, end of year: Unpaid obligations:
Treasury balance .......................................................

–147,173

–157,413

–164,673

2349

Outlays .......................................................................

339,749

427,911

357,373

Total subsidy outlays ................................................

263,394

257,478

243,239

SMALL BUSINESS ADMINISTRATION’S SHARE OF DIRECT LOAN LEVELS
[In thousands of dollars]

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
thousands of dollars)
Identification code 73–1154–0–1–376

1994 actual

1995 est.

1996 est.

1994 actual

1995 est.

1996 est.

Handicapped loans ......................................................................
Economic opportunity loans ........................................................
Section 8(a) loans .......................................................................
Veterans loans .............................................................................
Specialized SBIC loans ................................................................
Micro loans ..................................................................................

9,499
8,484
2,440
11,963
15,000
8,235

4,065
0
0
0
5,877
27,348

0
0
0
0
15,001
30,211

Total direct loans ...........................................................

55,621

37,290

45,212

Direct loan levels supportable by subsidy budget authority:
1150 Handicapped loans ........................................................
1150 Economic opportunity loans ...........................................
1150 Section 8(a) loans .........................................................
1150 Veterans’ loans ..............................................................
1150 Specialized SBIC loans ..................................................
1150 Micro loans ....................................................................

9,499
4,065 ...................
8,484 ................... ...................
2,440 ................... ...................
11,963 ................... ...................
15,000
5,877
15,001
8,235
27,348
30,211

1159

55,621

37,290

45,212

1994 actual

1995 est.

1996 est.

34.04
21.89
13.29
25.05
31.64
10.15

41.82
23.16
14.49
26.21
43.10
19.61

0.00
0.00
0.00
0.00
42.85
19.86

General business loans ...............................................................
Development company loans (Section 502) ................................
Development company loans (Section 504) ................................
SBIC debenture guarantees ........................................................
SBIC participating security guarantees ......................................
Specialized SBIC loans ................................................................
Micro loan guarantees ................................................................

5,992,050
32,629
1,290,942
100,000
149,662
13,240
0

6,052,089
35,413
1,408,772
109,147
229,854
26,564
10,331

7,278,854
0
1,754,386
152,398
270,000
15,000
14,444

25.16

23.14

27.49

Total guaranteed loans ..................................................

7,578,523

7,872,170

9,485,082

SMALL BUSINESS ADMINISTRATION’S SHARE OF GUARANTEED LOAN LEVELS
[In thousands of dollars]

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Handicapped loans ........................................................
1320 Economic opportunity loans ...........................................
1320 Section 8(a) loans .........................................................
1320 Veterans’ loans ..............................................................
1320 Specialized SBIC loans ..................................................
1320 Micro loans ....................................................................
1329

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Handicapped loans ........................................................
1330 Economic opportunity loans ...........................................
1330 Section 8(a) loans .........................................................
1330 Veterans’ loans ..............................................................
1330 Specialized SBIC loans ..................................................
1330 Micro loans ....................................................................
1339

3,265
1,700 ...................
1,861 ................... ...................
663 ................... ...................
3,006 ................... ...................
4,746
2,533
6,428
2,000
5,363
6,000

Total subsidy budget authority .................................
Direct loan subsidy outlays:
1340 Handicapped loans ........................................................
1340 Economic opportunity loans ...........................................
1340 Section 8(a) loans .........................................................
1340 Veterans’ loans ..............................................................
1340 Specialized SBIC loans ..................................................
1340 Micro loans ....................................................................

15,541

1349

15,016

Total subsidy outlays ................................................

3,104
1,548
522
2,639
4,746
2,457

9,596

12,428

2,467
850
836 ...................
146 ...................
1,348 ...................
2,533
6,428
8,753
6,946
16,083

14,224

Guaranteed loan levels supportable by subsidy budget
authority:
2150 General business loans ................................................. 7,833,472
2150 Section 502 development company loans .....................
44,529
2150 Section 504 development company loans ..................... 1,290,942
2150 SBIC debenture guarantees ...........................................
100,000
2150 SBIC participating security guarantees ........................
149,662
2150 Specialized SBIC guarantees .........................................
13,240
2150 Micro loan guarantees ................................................... ...................

7,849,661 6,875,362
44,267 ...................
1,408,772 1,754,386
109,147
152,398
229,854
270,000
26,564
15,000
10,331
14,444

2159

9,431,845

9,678,596

9,081,590

2.15
1.60
0.51
16.25
9.00
29.92
0.00

2.74
1.50
0.57
14.65
8.90
27.85
11.77

2.76
1.50
0.57
14.76
8.94
28.02
11.77

Weighted average subsidy rate .................................
2.22
Guaranteed loan subsidy budget authority:
2330 General business loans .................................................
168,420
2330 Section 502 development company loans .....................
712
2330 Section 504 development company loans .....................
6,584
2330 SBIC debenture guarantees ...........................................
16,250
2330 SBIC participating securities guarantees .....................
13,470
2330 Specialized SBIC guarantees .........................................
3,961
2330 Micro loan guarantees ................................................... ...................

2.78

2.78

194,550
189,760
664 ...................
8,030
10,000
15,990
22,494
20,457
24,138
7,398
4,203
1,216
1,700

2339

248,305

252,295

202,013
683
5,959
15,269
26,767
5,997
790

187,868
202
7,503
19,418
21,827
4,951
1,470

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 General business loans .................................................
2320 Section 502 development company loans .....................
2320 Section 504 development company loans .....................
2320 SBIC debenture guarantees ...........................................
2320 SBIC participating security guarantees ........................
2320 Specialized SBIC guarantees .........................................
2320 Micro loan guarantees ...................................................
2329

Total subsidy budget authority .................................
209,397
Guaranteed loan subsidy outlays:
2340 General business loans .................................................
241,015
2340 Section 502 development company loans .....................
1,058
2340 Section 504 development company loans .....................
4,301
2340 SBIC debenture guarantees ...........................................
13,489
2340 SBIC participating securities guarantees ..................... ...................
2340 Specialized SBIC guarantees .........................................
3,531
2340 Micro loan guarantees ................................................... ...................

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the direct loans obligated and loan guarantees
committed in 1992 and beyond (including modifications of
direct loans or loan guarantees that resulted from obligations
or commitments in any year), as well as administrative expenses of this program. The subsidy amounts are estimated
on a present value basis; the administrative expenses are
estimated on a cash basis. Given the significant recent growth
in SBA’s credit programs, and the need for additional data
on loan performance, during 1995 SBA will be conducting
a study to test the reliability of its current credit subsidy
estimates for its major credit programs.
General Business Assistance.—The Small Business Administration (SBA) guarantees loans to small businesses that are
unable to obtain private financing. These loans must be of
such value or so secured as to reasonably assure repayment.
No loan may be made unless the financial assistance is not
otherwise available on reasonable terms. Under the guarantee
plan, the SBA agrees to purchase the guaranteed portion
of the loan only upon default. The SBA’s share of loans guaranteed by private lenders averages about 77 percent.
Investment Company Assistance.—A primary function of
small business investment companies is to provide a source
of equity capital or long-term loans to new or expanding small
businesses. The Small Business Investment Act, as amended,
authorizes the SBA to purchase or to guarantee the timely
payment of all principal and interest, as scheduled, on debentures issued by such companies. In addition, since 1994, the
SBA has guaranteed the performance of participating securities issued by these companies.
Development Company Assistance.—Under the Small Business Investment Act, the SBA makes loans through State
and local development companies to small businesses.
Through these programs, the SBA promotes economic development and job creation and maintenance by stimulating the
flow of long-term financing to small business concerns for
projects that involve fixed assets. These projects are designed
to create or retain a meaningful number of jobs in the communities affected, with a special emphasis on distressed areas.
Approximately 130,000 jobs were created or maintained
through the $1.3 billion in loans guaranteed under the Development Company programs in 1994.
1996 Proposal.—The budget proposes modest increases in
funding for the Section 504 Certified Development Company,

924

THE BUDGET FOR FISCAL YEAR 1996

Federal Funds—Continued

87.00

Credit accounts—Continued
BUSINESS LOANS PROGRAM ACCOUNT—Continued

Small Business Investment Company, and Micro loan programs.
Object Classification (in thousands of dollars)
Identification code 73–1154–0–1–376

1994 actual

1995 est.

Financing disbursements (gross) ..............................

75,251

78,916

63,009

Adjustments to financing authority and financing disbursements:
Offsetting collections from:
88.00
Federal sources: Payments from program account
Non-Federal sources:
88.40
Repayments of principal, net ...............................
88.40
Interest received on loans ....................................

–13,993

–14,965

–12,428

–11,181
–10,302

–9,119
–13,243

–9,934
–15,297

88.90

Total, offsetting collections ..................................

–35,476

–37,327

–37,659

89.00
90.00

Financing authority (net) ...............................................
Financing disbursements (net) ......................................

24,956
39,775

35,017
41,589

17,736
25,350

1996 est.

25.2
41.0

Other services ................................................................
Grants, subsidies, and contributions ............................

94,737
223,390

97,000
341,151

99,910
264,723

99.9

Total obligations ........................................................

318,127

438,151

364,633

Status of Direct Loans (in thousands of dollars)
BUSINESS LOAN PROGRAM ACCOUNT

1994 actual

Identification code 73–4148–0–3–376

(Legislative proposal, not subject to PAYGO)
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
thousands of dollars)

1995 est.

1996 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
55,620
64,670
45,213
1150

Identification code 73–1154–2–1–376

1994 actual

1995 est.

Total direct loan obligations .....................................

55,620

64,670

45,213

1210
1231
1251
1264

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................
Write-offs for default: Other adjustments, net .............

94,889
61,920
–14,612
–3,430

138,767
58,380
–19,388
–10,277

167,482
51,255
–23,872
–14,624

1290

Outstanding, end of year ..........................................

138,767

167,482

180,241

1996 est.

Guaranteed loan levels supportable by subsidy budget
authority:
2159 Total loan guarantee levels ........................................... ................... ................... 2,565,434
Guaranteed loan subsidy (in percent):
2329 Weighted average subsidy rate .....................................
0.00
0.00
–0.75
Guaranteed loan subsidy budget authority:
2339 Total subsidy budget authority ...................................... ................... ................... ...................
Guaranteed loan subsidy outlays:
2349 Total subsidy outlays ..................................................... ................... ................... ...................

The budget proposes a new annual fee to be collected by
SBA equal to 30 basis points on the unpaid balance of 7(a)
General Business loans excluding those loans sold in the secondary market. In addition, the budget proposes to eliminate
the existing one percent guarantee fee rebate for approved
loans under $50,000. The rebate, which was originally established to offset the heavy paperwork burden of processing
small loans, is no longer necessary due to the new LowDoc
program which requires significantly less paperwork. These
reforms would reduce the subsidy rate from 2.76 to 2.01 in
1996. They would allow the 7(a) program level to increase
to meet expected demand while lowering the credit subsidy
budget authority needed to support the program.

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond (including modifications of direct loans that resulted from obligations in any year). The amounts in this
account are a means of financing and are not included in
the budget totals.
Balance Sheet (in thousands of dollars)
Identification code 73–4148–0–3–376

ASSETS:
Investments in US securities:
1106
Federal assets: Receivables,
net ...................................
Net value of assets related to
post–1991 direct loans
receivable:
1401
Direct loans receivable,
gross ...............................
1405
Allowance for subsidy cost
(–) ...................................

1993 actual

1994 actual

1995 est.

1996 est.

Program and Financing (in thousands of dollars)
Identification code 73–4148–0–3–376

1994 actual

1995 est.

1996 est.

Program by activities:
00.01 Direct loans ....................................................................
00.02 Interest on Treasury borrowing ......................................

55,620
4,812

64,670
7,674

45,213
10,182

10.00

Total obligations ........................................................

60,432

72,344

55,395

39.00

Financing:
Financing authority (gross) ...........................................

60,432

72,344

67.15
68.00
68.47

51,250
35,476
–26,294

55,478
37,327
–20,461

38,197
37,659
–20,461

Spending authority from offsetting collections
(total) ................................................................

9,182

16,866

72,344
–6,297
35,237

–6,734
29,102

6,297
–35,237

6,734
–29,102

5,592
–20,346

94,889

138,767

167,482

180,241

–6,207

–9,079

–10,957

–11,792

88,682

129,688

156,525

168,449

Total assets .........................
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury .............

96,124

135,985

163,259

174,042

88,682

129,688

156,525

168,449

88,682

129,688

156,525

168,449

1499

55,395

–7,442
51,201

5,593

17,198

60,432

6,734

Net present value of assets related to direct
loans ...........................

55,395

Financing authority:
Authority to borrow (indefinite) .................................
Spending authority from offsetting collections ........
Portion applied to debt reduction .............................

6,297

2999

BUSINESS DIRECT LOAN FINANCING ACCOUNT

7,442

68.90

Relation of obligations to financing disbursements:
Total obligations ............................................................
Obligated balance, start of year:
72.10
Receivables from program account ..........................
72.90
Fund balance .............................................................
Obligated balance, end of year:
74.10
Receivables from program account ..........................
74.90
Fund balance .............................................................
71.00

1999

Total liabilities ....................
NET POSITION:
3100 Appropriated capital ................

7,442

6,297

6,734

5,593

3999

Total net position ................

7,442

6,297

6,734

5,593

4999

Total liabilities and net position ...............................

96,124

135,985

163,259

174,042

Object Classification (in thousands of dollars)
Identification code 73–4148–0–3–376

1994 actual

1995 est.

1996 est.

33.0
43.0

Investments and loans ..................................................
Interest and dividends ...................................................

55,620
4,812

64,670
7,674

45,213
10,182

99.9

Total obligations ........................................................

60,432

72,344

55,395

SMALL BUSINESS ADMINISTRATION

Federal Funds—Continued

BUSINESS GUARANTEED LOAN FINANCING ACCOUNT

Balance Sheet (in thousands of dollars)
Identification code 73–4149–0–3–376

Program and Financing (in thousands of dollars)
Identification code 73–4149–0–3–376

1994 actual

1995 est.

1996 est.

00.01

Program by activities:
Default claims ...............................................................

317,244

486,674

576,285

10.00

Total obligations ........................................................

317,244

486,674

576,285

Financing:
21.90 Unobligated balance available, start of year: Fund
balance ......................................................................
24.90 Unobligated balance available, end of year: Fund
balance ......................................................................

–743,982

–919,712

–972,674

919,712

972,674

1,002,011

492,974

539,636

605,622

317,244

486,674

–106,029

–62,819

ASSETS:
Federal assets:
1101
Fund balances with Treasury ...................................
Investments in US securities:
1106
Receivables, net ..............
Net value of assets related to
post–1991 acquired defaulted guaranteed loans
receivable:
1501
Defaulted guaranteed loans
receivable, gross .............
1502
Interest receivable ...............
1505
Allowance for subsidy cost
(–) ...................................

576,285
–80,651

68.00

Financing authority (gross): Spending authority
from offsetting collections ....................................

Relation of obligations to financing disbursements:
Total obligations ............................................................
Obligated balance, start of year: Receivables from
program account, start of year .................................
74.10 Obligated balance, end of year: Receivables from
program account, end of year ..................................
71.00
72.10

87.00

Financing disbursements (gross) ..............................

925

1599

Net present value of assets related to defaulted
guaranteed
loans ...........................

1993 actual

1994 actual

1995 est.

1996 est.

743,982

919,712

972,674

1,002,011

106,029

62,819

80,651

75,689

120,109
7,446

379,470
23,527

779,209
48,311

1,115,482
69,510

–48,044

–161,199

–331,008

–476,259

80,651

75,689

274,034

504,506

571,323

Adjustments to financing authority and financing disbursements:
Offsetting collections from:
88.00
Federal sources: Payments from program account
88.25
Interest on uninvested funds ....................................
Non-Federal sources:
88.40
Fees .......................................................................
88.40
Recoveries .............................................................

–330,194
–47,103

–298,836
–55,218

–252,295
–57,381

–106,808
–8,869

–113,572
–72,010

–105,335
–190,611

88.90

–492,974

–539,636

241,798

496,512

708,733

929,522

1,224,329

1,549,837

1,786,433

823,493

1,161,510

1,469,186

1,710,744

2999

62,819

79,511

Total assets .........................
LIABILITIES:
2204 Non-Federal liabilities: Liabilities for loan guarantees ....
Total liabilities ....................
NET POSITION:
3100 Appropriated capital ................

823,493

1,161,510

1,469,186

1,710,744

106,029

62,819

80,651

75,689

3999

Total net position ................

106,029

62,819

80,651

75,689

4999

Total liabilities and net position ...............................

929,522

1,224,329

1,549,837

1,786,433

1999

–605,622

89.00
90.00

Total, offsetting collections ..................................

Financing authority (net) ............................................... ................... ................... ...................
Financing disbursements (net) ......................................
–218,940
–35,130
–34,299

BUSINESS GUARANTEED LOAN FINANCING ACCOUNT
(Legislative proposal, not subject to PAYGO)

Status of Guaranteed Loans (in thousands of dollars)
Identification code 73–4149–0–3–376

Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation
2150

2210
2231
2251
2261
2290

Total guaranteed loan commitments ........................

Program and Financing (in thousands of dollars)

1994 actual

1995 est.

1996 est.

9,431,845

9,678,596

9,081,590

9,431,845

9,678,596

9,081,590

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year ............................................. 9,087,189 14,991,623 20,700,402
Disbursements of new guaranteed loans ...................... 8,068,925 8,934,871 8,580,267
Repayments and prepayments ...................................... –1,847,247 –2,739,418 –3,518,131
Adjustments: Terminations for default that result in
loans receivable ........................................................
–317,244
–486,674
–576,285
Outstanding, end of year ..........................................

Identification code 73–4149–2–3–376

10.00

1994 actual

1995 est.

Program by activities:
Total obligations ............................................................ ................... ...................

1996 est.

5,952

Financing:
21.40 Unobligated balance available, start of year: Treasury
balance ...................................................................... ................... ................... ...................
24.40 Unobligated balance available, end of year: Treasury
balance ...................................................................... ................... ...................
18,512

20,700,402

25,186,253

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

11,993,298

16,353,318

19,645,277

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2361
Write-offs of loans receivable ...................................

89,921
317,244
–20,304
–7,391

379,470
486,674
–46,956
–39,979

779,209
576,285
–81,391
–158,621

2390

379,470

779,209

Financing authority (gross): Spending authority
from offsetting collections .................................... ................... ...................

24,464

71.00

Relation of obligations to financing disbursements:
Total obligations ............................................................ ................... ...................

5,952

87.00

14,991,623

68.00

Financing disbursements (gross) .............................. ................... ...................

5,952

Adjustments to financing authority and financing disbursements:
Offsetting collections from:
88.25
Interest on uninvested funds .................................... ................... ...................
88.40
Non-Federal sources .................................................. ................... ...................

–679
–23,785

88.90

–24,464

1,115,482

Outstanding, end of year ......................................

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from loan guarantees committed
in 1992 and beyond (including modifications of loan guarantees that resulted from commitments in any year). The
amounts in this account are a means of financing and are
not included in the budget totals.

89.00
90.00

Total, offsetting collections .................................. ................... ...................

Financing authority (net) ............................................... ................... ................... ...................
Financing disbursements (net) ...................................... ................... ...................
–18,512

Status of Guaranteed Loans (in thousands of dollars)
Identification code 73–4149–2–3–376

1994 actual

1995 est.

1996 est.

Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation ................... ...................

2,565,434

2150

2,565,434

Total guaranteed loan commitments ........................ ................... ...................

926

THE BUDGET FOR FISCAL YEAR 1996

Federal Funds—Continued

BUSINESS GUARANTEED LOAN FINANCING ACCOUNT—Continued
Status of Guaranteed Loans (in thousands of dollars)—Continued
Identification code 73–4149–2–3–376

2210
2231
2251
2261
2290

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments: Terminations for default that result in
loans receivable ........................................................

1994 actual

1995 est.

–5,952

Outstanding, end of year .......................................... ................... ...................

1,544,204

Total, offsetting collections ..................................

–927,646

89.00
90.00

Budget authority (net) ...................................................
Outlays (net) ..................................................................

1,204,479

................... ...................
...................
5,952
...................
–298
................... ...................
5,654

BUSINESS LOAN FUND LIQUIDATING ACCOUNT

BUSINESS LOAN FUND, DIRECT LOANS
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year ........................................
Disbursements:
1231
Direct loan disbursements ....................................
1232
Purchase of loans assets from the public ...........
1251
Repayments: Repayments and prepayments ............
1263
Write-offs for default: Direct loans ...........................

1994 actual

1995 est.

1996 est.

Program by activities:
Capital investments:
00.01
Direct loans ............................................................... ................... ................... ...................
00.02
Defaults on guarantee loans—regular .....................
360,124
360,000
260,000
00.02
Defaults on guarantee loans—SBIC ........................
9,000
10,000
7,000
00.04
FFB loan commitments .............................................
–42,292
–30,000
–27,000
00.05
Other expenses ..........................................................
129,047
142,200
134,444
00.06
Section 503 prepayments .......................................... ...................
30,000 ...................

Outstanding, end of year ......................................

SMALL BUSINESS INVESTMENT COMPANY, DIRECT LOANS
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year ........................................
Repayments:
1251
Repayments and prepayments .............................
1252
Proceeds from loan asset sales to the public
or discounted ....................................................
1290

Program and Financing (in thousands of dollars)

–639,941

–495,103

164,710 ................... ...................
–160,618
–485,653
–238,564

Status of Direct Loans (in thousands of dollars)

1290
...................
...................
...................
...................

Outstanding, end of year ...................................... ................... ...................

Identification code 73–4154–0–3–376

–132,092
–100,722
–400,000 ...................

Identification code 73–4154–0–3–376

................... ...................

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2361
Write-offs of loans receivable ...................................

Other income .........................................................
–158,895
Section 503 prepayments ..................................... ...................

................... ................... ...................
................... ................... 1,667,532
................... ...................
–117,376

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................ ................... ...................

2390

1996 est.

88.40
88.40
88.90

Credit accounts—Continued

Outstanding, end of year ......................................

SECTION 503 DEVELOPMENT COMPANY, DIRECT LOANS
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year ........................................
Repayments:
1251
Repayments and prepayments .............................
1252
Proceeds from loan asset sales to the public
or discounted ....................................................
1290

Outstanding, end of year ......................................

1994 actual

1995 est.

1996 est.

2,229,663

1,986,778

1,813,115

1,158 ................... ...................
332,742
334,908
225,186
–258,785
–210,554
–187,937
–318,000
–298,017
–271,983
1,986,778

1,813,115

1,578,381

90,414

56,649

24,649

–21,255

–20,000

–12,649

–12,510

–12,000

–12,000

56,649

24,649 ...................

576,440

523,010

105,010

–24,540

–400,000

–39,000

–28,890

–18,000

–15,000

523,010

105,010

51,010

Status of Guaranteed Loans (in thousands of dollars)
00.91
01.01

Total capital expenses ..........................................
Operating expenses: Interest expense to Treasury ........

455,879
36,369

512,200
36,264

374,444
31,572

10.00

Total obligations ........................................................

492,248

548,464

406,016

–2,233
–304,285

–2,103
–527,602

–2,000
–455,797

2,103
527,602
89,216

2,000
455,797
451,090

2,000
466,235
78,649

804,651

927,646

495,103

Financing:
Unobligated balance available, start of year:
Fund balance:
21.90
Committed .............................................................
21.90
Uncommitted .........................................................
Unobligated balance available, end of year:
Fund balance:
24.90
Committed .............................................................
24.90
Uncommitted .........................................................
31.00 Redemption of debt .......................................................

Identification code 73–4154–0–3–376

1994 actual

1995 est.

1996 est.

BUSINESS LOAN FUND, LOAN GUARANTEES
Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year ............................................. 11,732,815 9,479,156 7,801,156
2231 Disbursements of new guaranteed loans ......................
54,785 ................... ...................
2251 Repayments and prepayments ...................................... –1,904,369 –1,403,000 –1,117,000
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
–391,000
–264,000
–176,000
2264
Other adjustments, net .............................................
–13,075
–11,000
–9,000

60.05
68.00

Budget authority:
Appropriation (indefinite) ..........................................
Spending authority from offsetting collections ........

71.00
72.90
74.90

Relation of obligations to outlays:
Total obligations ............................................................
Obligated balance, start of year: Fund balance ...........
Obligated balance, end of year: Fund balance .............

492,248
31,127
–44,052

548,464
44,052
–150,523

406,016
150,523
–300,000

87.00

Outlays (gross) ..........................................................

479,323

441,993

9,479,156

7,801,156

6,499,156

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

7,583,280

6,240,881

5,199,281

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............

397,432
391,055

788,487
264,000

1,052,487
176,000

2390

Budget authority (gross) ...........................................

Outstanding, end of year ..........................................

2299

39.00

2290

788,487

1,052,487

1,228,487

256,539

Adjustments to gross budget authority and outlays:
Offsetting collections from:
Loan repayments:
Non-Federal sources:
88.40
Financing programs .........................................
88.40
Investment programs .......................................
88.40
SBIC obligations ...............................................
88.40
Section 503 development obligations ..............
Interest income:
88.40
Financing programs ..............................................
88.40
Investment programs ............................................

164,710 ................... ...................
639,941
927,646
495,103

–225,415
–180,066
–31,488
–30,488
–21,255
–20,000
–24,540 ...................

–158,449
–29,488
–12,649
–39,000

–165,311
–13,037

–141,795
–13,000

–152,000
–13,000

Outstanding, end of year ......................................

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, all cash flows to and
from the Government resulting from direct loans obligated
and loan guarantees committed prior to 1992. This account
is shown on a cash basis. All new activity in this program
in 1992 and beyond (including modifications of direct loans
or loan guarantees that resulted from obligations or commitments in any year) is recorded in corresponding program and
financing accounts.

SMALL BUSINESS ADMINISTRATION

Federal Funds—Continued

Statement of Operations (in thousands of dollars)
1993 actual

1994 actual

1995 est.

1996 est.

0101
0102

Revenue ...................................................
Expense ....................................................

673,242
–701,369

558,008
–499,402

441,674
–513,478

401,750
–391,311

0109

Net loss ...............................................

–28,127

58,606

–71,804

10,439

Identification code 73–4154–0–3–376

Balance Sheet (in thousands of dollars)
Identification code 73–4154–0–3–376

ASSETS:
Federal assets:
1101
Fund balances with Treasury ...................................
Investments in US securities:
1107
Advances and prepayments ..........................
Non-Federal assets:
1206
Receivables, net ..................
1207
Advances and prepayments
Net value of assets related to
pre–1992 direct loans receivable and acquired
defaulted
guaranteed
loans receivable:
1601
Direct loans, gross ..............
1603
Allowance for estimated
uncollectible loans and
interest (–) ......................

1993 actual

1994 actual

1995 est.

1996 est.

927

In addition, for the cost of emergency disaster loans and associated
administrative expenses, ø$125,000,000¿ $100,000,000, to remain
available until expended: Provided, That these funds, or any portion
thereof, shall be available beginning in fiscal year ø1995¿ 1996 to
the extent that the President notifies the Congress of his designation
of any or all of these amounts as emergency requirements under
the Budget Enforcement Act of 1990: Provided further, That Congress
hereby designates these amounts as emergency requirements pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended. (Departments of Commerce,
Justice, and State, the Judiciary, and Related Agencies Appropriations
Act, 1995.)
Program and Financing (in thousands of dollars)

272,826

511,719

532,826

550,000

46,647

17,310

19,576

20,000

00.01
00.09

Program by activities:
Direct loan subsidy ........................................................
Administrative expenses ................................................

875,059
268,962

363,499
200,500

34,432
80,340

797,648
50,656

840,522
18,782

400,000
15,000

300,000
12,000

10.00

563,999

114,772

Identification code 73–1152–0–1–453

1994 actual

2,320,984

1,986,778

1,813,115

1,578,381

–1,114,146

–1,315,070

–610,000

–590,000

1,206,838

671,708

1,203,115

988,381

89,883

487,798

74,277

2,547,839

2,244,794

1,877,468

1,460,968
54,433

1,300,517
50,000

1,105,381
45,000

580,750

180,000

130,000

74,277

74,277

7,087

17,813

10,000

10,000

321,912

600,000

550,000

37,686

30,000

30,000

2999

Total liabilities ....................

2,464,498

2,547,839

2,244,794

1,877,468

4999

Total liabilities and net position ...............................

2,464,498

2,547,839

2,244,794

1,877,468

1,144,021

–264,516

39.00

Budget authority ........................................................

1,313,351

40.00
42.00

Budget authority:
Appropriation .............................................................
Transferred from other accounts ..............................

43.00

Appropriation (total) .............................................

1996 est.

–433,846 ...................

433,846 ................... ...................

7,087

Total assets .........................
2,464,498
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................
2,108,196
2102
Interest payable ...................
63,127
Debt:
2103
Debt to the FFB .............. ......................
2103
SBIC and development
company participation
certificates ..................
74,277
Non-Federal liabilities:
2201
Accounts payable ................
41,608
2204
Liabilities for loan guarantees .................................
177,290
2207
Unearned revenue (advances) ............................ ......................

Total obligations ........................................................

Financing:
21.40 Unobligated balance available, start of year: Treasury
balance ......................................................................
24.40 Unobligated balance available, end of year: Treasury
balance ......................................................................

1995 est.

1699
1901

Value of assets related
to direct loans ............
Other Federal assets: Other
assets ..................................

1999

Relation of obligations to outlays:
Total obligations ............................................................
Obligated balance, start of year: Unpaid obligations:
Treasury balance .......................................................
74.40 Obligated balance, end of year: Unpaid obligations:
Treasury balance .......................................................
71.00
72.40

90.00

Outlays .......................................................................

130,153

114,772

1,163,351
130,153
114,772
150,000 ................... ...................
1,313,351

130,153

114,772

1,144,021

563,999

114,772

200,127

655,442

457,974

–655,442

–457,974

–242,284

688,706

761,467

330,462

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
thousands of dollars)
Identification code 73–1152–0–1–453

Direct loan levels supportable by subsidy budget authority:
1159 Total direct loan levels ..................................................
Direct loan subsidy (in percent):
1329 Weighted average subsidy rate .....................................
Direct loan subsidy budget authority:
1339 Total subsidy budget authority ......................................
Direct loan subsidy outlays:
1349 Total subsidy outlays .....................................................

1994 actual

1995 est.

1996 est.

3,806,259

1,152,502

109,517

22.99

31.54

31.44

875,059

363,499

34,432

580,831

560,967

250,122

Object Classification (in thousands of dollars)
Identification code 73–4154–0–3–376

1994 actual

1995 est.

1996 est.

33.0
43.0

Investments and loans ..................................................
Interest and dividends ...................................................

455,879
36,369

512,200
36,264

374,444
31,572

99.9

Total obligations ........................................................

492,248

548,464

406,016

DISASTER LOANS PROGRAM ACCOUNT
For the cost of direct loans authorized by section 7(b) of the Small
Business Act, as amended, ø$52,153,000¿ $34,432,000, to remain
available until expended: Provided, That such costs, including the
cost of modifying such loans, shall be as defined in section 502 of
the Congressional Budget Act of 1974ø: Provided further, That none
of the funds provided in this or any other Act may be used for
the cost of direct loans to any borrower under section 7(b) of the
Small Business Act to relocate voluntarily outside the business area
in which the disaster has occurred¿.
In addition, for administrative expenses to carry out the direct
loan program, ø$78,000,000¿ $80,340,000, which may be transferred
to and merged with the appropriations for Salaries and Expenses.

As required by the Federal Credit Reform Act of 1990,
this account records, for loans made pursuant to section 7(b)
of the Small Business Act, as amended, the subsidy costs
associated with the direct loans obligated in 1992 and beyond
(including modifications of direct loans or loan guarantees
that resulted from obligations or commitments in any year),
as well as administrative expenses of this program. The subsidy amounts are estimated on a present value basis; the
administrative expenses are estimated on a cash basis.
Physical Disaster Loans.—Under this program, loans are
made to individuals and businesses at favorable terms and
conditions for uninsured losses of property, both real and
personal, damaged by natural disasters such as tornadoes,
floods, hurricanes, etc. Excluding catastrophic events, SBA
makes about $407 million, on average, in new loan obligations
each year. The 1996 request, including the program reform
proposal below, would support this average program level.
The 1994 appropriation includes supplemental funds appropriated to meet the increased demand for the program due
to the Northridge earthquake and the Southeast floods.

928

THE BUDGET FOR FISCAL YEAR 1996

Federal Funds—Continued

Credit accounts—Continued

Status of Direct Loans (in thousands of dollars)

DISASTER LOANS PROGRAM ACCOUNT—Continued

Identification code 73–1152–0–1–453

1994 actual

1995 est.

1994 actual

Identification code 73–4150–0–3–453

Object Classification (in thousands of dollars)
1996 est.

25.2
41.0

Other services ................................................................
Grants, subsidies, and contributions ............................

268,962
875,059

200,500
363,499

80,340
34,432

99.9

Total obligations ........................................................

1,144,021

563,999

1995 est.

1996 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............ 3,806,259 1,152,502
109,517

114,772

1150

Total direct loan obligations .....................................

3,806,259

1,152,502

109,517

DISASTER LOANS PROGRAM ACCOUNT

1210
1231
1251
1264

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................
Write-offs for default: Other adjustments, net .............

1,308,368
2,548,731
–244,406
–27,170

3,585,523
2,240,611
–548,175
–64,647

5,213,312
752,325
–645,915
–120,792

(Legislative proposal, not subject to PAYGO)

1290

Outstanding, end of year ..........................................

3,585,523

5,213,312

5,198,930

The budget proposes that starting in 1996, to reduce the
deep subsidy in this program, the interest rate be increased
to the Treasury cost of borrowing plus two points.
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
thousands of dollars)
Identification code 73–1152–2–1–453

1994 actual

1995 est.

1996 est.

Direct loan levels supportable by subsidy budget authority:
1159 Total direct loan levels .................................................. ................... ...................
297,483
Direct loan subsidy (in percent):
1329 Weighted average subsidy rate .....................................
0.00
0.00
–22.98
Direct loan subsidy budget authority:
1339 Total subsidy budget authority ...................................... ................... ................... ...................
Direct loan subsidy outlays:
1349 Total subsidy outlays ..................................................... ................... ................... ...................

DISASTER DIRECT LOAN FINANCING ACCOUNT
Program and Financing (in thousands of dollars)
Identification code 73–4150–0–3–453

1994 actual

1995 est.

1996 est.

00.01
00.02

Program by activities:
Direct loans ....................................................................
Interest on Treasury borrowing ......................................

3,806,259
124,126

1,152,502
228,890

109,517
285,849

10.00

Total obligations ........................................................

3,930,385

1,381,392

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond (including modifications of direct loans that resulted from obligations in any year). The amounts in this
account are a means of financing and are not included in
the budget totals.
Balance Sheet (in thousands of dollars)
Identification code 73–4150–0–3–453

ASSETS:
Federal assets:
1101
Fund balances with Treasury ...................................
Investments in US securities:
1106
Program account .............
Net value of assets related to
post–1991 direct loans
receivable:
1401
Direct loans receivable,
gross ...............................
1405
Allowance for subsidy cost
(–) ...................................

395,366

2,112,426

576,251

54,758

145,970

437,529

181,750

17,216

1,308,368

3,585,523

5,213,312

5,198,930

–85,594

–234,567

–341,058

–349,541

3,350,956

4,872,254

4,849,389

5,900,911

5,630,255

4,921,363

1,222,774

3,350,956

4,872,254

4,849,389

75,085
838,138
–517,857

2999

1,222,774

3,350,956

4,872,254

4,849,389

671,451

2,549,955

758,001

71,974

592,389

320,281

3999

Total net position ................

671,451

2,549,955

758,001

71,974

4999

Total liabilities and net position ...............................

1,894,225

5,900,911

5,630,255

4,921,363

Financing authority:
Authority to borrow (indefinite) .................................
Spending authority from offsetting collections ........
Portion applied to debt reduction (–) .......................

2,931,200
1,242,433
–243,248

789,003
1,087,556
–495,167

Spending authority from offsetting collections
(total) ................................................................

999,185

Relation of obligations to financing disbursements:
Total obligations ............................................................ 3,930,385
Obligated balance, start of year:
72.10
Receivables from program account ..........................
–145,970
72.90
Fund balance: Unpaid obligations ............................
525,481
Obligated balance, end of year:
74.10
Receivables from program account ..........................
437,529
74.90
Fund balance: Unpaid obligations ............................ –2,112,426

1,381,392
–437,529
2,112,426

–181,750
576,251

181,750
–576,251

17,216
–54,758

87.00

Total liabilities ....................
NET POSITION:
3100 Appropriated capital ................

395,366

71.00

Financing disbursements (gross) ..............................

2,634,999

2,661,788

752,325

Adjustments to financing authority and financing disbursements:
Offsetting collections from:
88.00
Payments from program account ..............................
Non-Federal sources:
88.40
Repayments of principal, net ...............................
88.40
Interest received on loans ....................................

–875,059

–363,499

Object Classification (in thousands of dollars)
Identification code 73–4150–0–3–453

–217,917
–149,457

–487,143
–236,914

–838,138

2,687,952
1,392,565

293,836
1,574,232

–442,772
–85,813

1995 est.

1996 est.

Investments and loans ..................................................
Interest and dividends ...................................................

3,806,259
124,126

1,152,502
228,890

109,517
285,849

99.9

Total obligations ........................................................

3,930,385

1,381,392

395,366

DISASTER DIRECT LOAN FINANCING ACCOUNT
(Legislative proposal, not subject to PAYGO)

–538,708
–264,998

Total, offsetting collections .................................. –1,242,433 –1,087,556

1994 actual

33.0
43.0

–34,432

Financing authority (net) ...............................................
Financing disbursements (net) ......................................

525,481

1,894,225

395,366

89.00
90.00

1996 est.

1,222,774

1,381,392

88.90

1995 est.

Total assets .........................
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury .............

3,930,385

68.90

Net present value of assets related to direct
loans ...........................

1994 actual

1999

Financing:
39.00 Financing authority (gross) ...........................................

67.15
68.00
68.47

1499

1993 actual

Program and Financing (in thousands of dollars)
Identification code 73–4150–2–3–453

00.01

1994 actual

1995 est.

Program by activities:
Direct loans .................................................................... ................... ...................

1996 est.

297,483

SMALL BUSINESS ADMINISTRATION

929

Federal Funds—Continued

00.02

Interest on Treasury borrowing ...................................... ................... ...................

5,159

10.00

Financing authority:
Authority to borrow (indefinite) ................................. ................... ...................
Spending authority from offsetting collections ........ ................... ...................
Portion applied to debt reduction ............................. ................... ...................

297,483
13,380
–8,221

Spending authority from offsetting collections
(total) ................................................................ ................... ...................

5,159

31,725
–13,876

13,876
–5,000

5,000
–2,000

Outlays (gross) ..........................................................

75,728

61,152

47,318

Adjustments to gross budget authority and outlays:
Offsetting collections from:
Non-Federal sources:
88.40
Loan repayments ...................................................
88.40
Interest income .....................................................
88.40
Other income .........................................................

–303,510
–107,056
–17,502

–288,591
–93,925
–12,000

–243,673
–79,306
–10,000

88.90

–428,068

–394,516

–332,979

302,642
302,642

Obligated balance, start of year: Fund balance ...........
Obligated balance, end of year: Fund balance .............

87.00

Total obligations ........................................................ ................... ...................

Financing:
39.00 Financing authority (gross) ........................................... ................... ...................

72.90
74.90

67.15
68.00
68.47
68.90

Relation of obligations to financing disbursements:
71.00 Total obligations ............................................................ ................... ...................
302,642
72.90 Obligated balance, start of year: Fund balance ........... ................... ................... ...................
74.90 Obligated balance, end of year: Fund balance ............. ................... ...................
–148,742
87.00

Financing disbursements (gross) .............................. ................... ...................

153,900

89.00
90.00

Total, offsetting collections ..................................

Budget authority (net) ................................................... ................... ................... ...................
Outlays (net) ..................................................................
–352,340
–333,364
–285,661

Status of Direct Loans (in thousands of dollars)
1994 actual

Identification code 73–4153–0–3–453

1995 est.

1996 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1231 Disbursements: Direct loan disbursements ...................
1251 Repayments: Repayments and prepayments .................
1263 Write-offs for default: Direct loans ...............................

Adjustments to financing authority and financing disbursements:
Offsetting collections from:
Non-Federal sources:
88.40
Repayments of principal (net) .............................. ................... ...................
88.40
Interest received on loans .................................... ................... ...................

–3,201
–10,179

88.90

Total, offsetting collections .................................. ................... ...................
Financing authority (net) ............................................... ................... ...................
Financing disbursements (net) ...................................... ................... ...................

289,262
140,520

1290

2,195,775

–13,380

89.00
90.00

2,530,545 2,195,775 1,854,011
10,032 ................... ...................
–303,510
–288,591
–243,673
–41,292
–53,173
–44,896

Outstanding, end of year ..........................................

1,854,011

1,565,442

Status of Guaranteed Loans (in thousands of dollars)

1994 actual

1995 est.

1996 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............ ................... ...................
297,483
1150

1210
1231
1251
1264
1290

Total direct loan obligations ..................................... ................... ...................
Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................
Write-offs for default: Other adjustments, net .............

...................
...................
...................
...................

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Repayments and prepayments ......................................

584
–88

496
–74

422
–63

2290

Outstanding, end of year ..........................................

496

422

359

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

447

380

323

150,203

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, all cash flows to and
from the Government resulting from direct loans obligated
prior to 1992. This account is shown on a cash basis. All
new activity in this program in 1992 and beyond (including
modifications of direct loans or loan guarantees that resulted
from obligations or commitments in any year) is recorded
in corresponding program and financing accounts.
Statement of Operations (in thousands of dollars)

DISASTER LOAN FUND LIQUIDATING ACCOUNT

Program by activities:
Capital investment: loan program ................................
Operating expenses:
01.01
Interest expense to Treasury .....................................
01.03
Other expenses ..........................................................

1995 est.

1996 est.

38,276
14,000

32,318
12,000

Total operating expenses ......................................

56,376

52,276

44,318

Total obligations ........................................................

57,879

52,276

44,318

Budget authority (gross): Spending authority from
offsetting collections ............................................

420,068
–57,879

500,000
–60,000

500,000
–60,000

Net income or loss (–) .......................

77,057

362,189

440,000

440,000

–7,443
–446,502

–4,902
–372,730

–4,902
–342,241

4,902
372,730
446,502

4,902
342,241
372,730

4,902
288,661
342,241

428,068

394,516

332,979

Identification code 73–4153–0–3–453

ASSETS:
1101 Federal assets: Fund balances
with Treasury .......................
1206 Non-Federal assets: Receivables, net ............................
Net value of assets related to
pre–1992 direct loans receivable and acquired
defaulted
guaranteed
loans receivable:
1601
Direct loans, gross ..............
1603
Allowance for estimated
uncollectible loans and
interest (–) ......................
1699
1801

71.00

Relation of obligations to outlays:
Total obligations ............................................................

1995 est.

1996 est.

Balance Sheet (in thousands of dollars)
40,489
15,887

10.00

68.00

130,852
–53,795

1,503 ................... ...................

01.91

Financing:
Unobligated balance available, start of year:
Fund balance:
21.90
Committed .............................................................
21.90
Uncommitted .........................................................
Unobligated balance available, end of year:
Fund balance:
24.90
Committed .............................................................
24.90
Uncommitted .........................................................
27.00 Capital transfer to general fund ...................................

1994 actual

Revenue ...................................................
Expense ....................................................

0109

1994 actual

1993 actual

0101
0102

Identification code 73–4153–0–3–453

Program and Financing (in thousands of dollars)

00.01

1996 est.

297,483

................... ...................
...................
153,900
...................
–3,179
...................
–518

Outstanding, end of year .......................................... ................... ...................

Identification code 73–4153–0–3–453

1995 est.

2210
2251

Status of Direct Loans (in thousands of dollars)
Identification code 73–4150–2–3–453

1994 actual

Identification code 73–4153–0–3–453

57,879

52,276

44,318

Value of assets related
to direct loans ............
Other Federal assets: Cash
and other monetary assets

1993 actual

1994 actual

1995 est.

1996 est.

484,501

391,508

370,000

350,000

106,403

83,379

80,000

70,000

2,530,545

2,195,775

1,854,011

1,565,442

–190,428

–176,838

–170,000

–165,000

2,340,117

2,018,937

1,684,011

1,400,442

1,170

7,603

900

900

930

THE BUDGET FOR FISCAL YEAR 1996

Federal Funds—Continued

Credit accounts—Continued
DISASTER LOAN FUND LIQUIDATING ACCOUNT—Continued
Balance Sheet (in thousands of dollars)—Continued
Identification code 73–4153–0–3–453

1999

1993 actual

1994 actual

1995 est.

1996 est.

Total assets .........................
LIABILITIES:
Federal liabilities:
2102
Interest payable ...................
2104
Resources payable to Treasury ...................................
2201 Non-Federal liabilities: Accounts payable ....................

2,932,191

2,501,427

2,134,911

1,821,342

50,509

40,490

37,327

32,318

2,881,406

2,459,661

2,097,584

1,789,024

2999

Total liabilities ....................

2,932,191

2,501,427

2,134,911

1,821,342

4999

Total liabilities and net position ...............................

2,932,191

2,501,427

2,134,911

1,821,342

276

1,276 ...................... ......................

Object Classification (in thousands of dollars)
Identification code 73–4153–0–3–453

1994 actual

1995 est.

1996 est.

33.0
43.0

Investments and loans ..................................................
Interest and dividends ...................................................

17,390
40,489

14,000
38,276

Total obligations ........................................................

57,879

52,276

44,318

2390

Outstanding, end of year ......................................

30,221
10,000
–2,000
–10,000

28,221
5,000
–1,800
–9,000

22,421
4,500
–1,600
–8,000

28,221

22,421

17,321

Public Law 94–305 established this fund to alleviate the
adverse impact of pollution regulations on small businesses.
As a result of the elimination of tax exempt financing associated with the Pollution Control Guaranteed program, no new
activity is anticipated for this program.
During 1992, the Small Business Administration started
the process of redeeming a large number of outstanding bonds
on which it has taken over loan payments. Most of these
targeted bonds are ten years old and voluntary redemption
is now viable under the bond documents. Redemption of these
obligations would preclude the SBA from paying excessive
interest over the next ten years.

12,000
32,318

99.9

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2361
Write-offs of loans receivable ...................................

Statement of Operations (in thousands of dollars)
1993 actual

Identification code 73–4147–0–3–376

1994 actual

1995 est.

1996 est.

0101
0102

Revenue ...................................................
Expense ....................................................

143
–34

208
–497

200
–200

200
–200

0109

Net loss ...............................................

109

–289

..................

..................

POLLUTION CONTROL EQUIPMENT FUND LIQUIDATING ACCOUNT
Balance Sheet (in thousands of dollars)

Program and Financing (in thousands of dollars)
Identification code 73–4147–0–3–376

10.00

Program by activities:
Total obligations (object class 42.0) ............................

Financing:
Unobligated balance available, start of year:
Fund balance:
21.90
Committed .............................................................
21.90
Uncommitted .........................................................
Unobligated balance available, end of year:
Fund balance:
24.90
Committed .............................................................
24.90
Uncommitted .........................................................

1994 actual

8,359

1995 est.

5,050

1996 est.

4,545

–10,087
–11,591

–12,225
–2,539

–8,136
–3,578

12,225
2,539

8,136
3,578

7,136
1,533

Budget authority (gross): Spending authority from
offsetting collections ............................................

1,445

2,000

1,500

71.00

Relation of obligations to outlays:
Total obligations ............................................................

8,359

5,050

4,545

87.00

Outlays (gross) ..........................................................

8,359

5,050

4,545

68.00

Adjustments to gross budget authority and outlays:
88.40 Offsetting collections from: Non-Federal sources .........
89.00
90.00

–1,445

–2,000

–1,500

Budget authority (net) ................................................... ................... ................... ...................
Outlays (net) ..................................................................
6,914
3,050
3,045

Identification code 73–4147–0–3–376

ASSETS:
1101 Federal assets: Fund balances
with Treasury .......................
1206 Non-Federal assets: Receivables, net ............................
1701 Net value of assets related to
pre–1992 direct loans receivable and acquired defaulted guaranteed loans
receivable: Defaulted guaranteed loans, gross .............
1999

1993 actual

1994 actual

1995 est.

1996 est.

21,678

14,730

11,714

8,669

8,530

21,375

22,421

17,321

50,444

5,646

5,000

4,000

Total assets .........................
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury .............
2201 Non-Federal liabilities: Accounts payable ....................

80,652

41,751

39,135

29,990

26,450

20,033

19,000

18,000

24,365

21,718

20,135

11,990

2999

50,815

41,751

39,135

29,990

122,557

145,557

145,557

140,000

–92,720

–145,557

–145,557

–140,000

Total liabilities ....................
NET POSITION:
3100 Appropriated capital ................
3300 Cumulative results of operations ...................................
3999

Total net position ................

29,837 ...................... ...................... ......................

4999

Total liabilities and net position ...............................

80,652

41,751

39,135

29,990

Status of Guaranteed Loans (in thousands of dollars)
Identification code 73–4147–0–3–376

1994 actual

1995 est.

1996 est.

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
114,643
105,361
97,861
Repayments and prepayments ......................................
–2,700
–2,500
–2,300
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
–6,582 ................... ...................
2263
Terminations for default that result in claim payments .................................................................... ...................
–5,000
–4,500

Trust Funds

2210
2251

2290

Outstanding, end of year ..........................................

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

BUSINESS ASSISTANCE TRUST FUND
Program and Financing (in thousands of dollars)
Identification code 73–8466–0–8–376

1994 actual

1995 est.

1996 est.

105,361

97,861

94,443

91,061

87,643

01.01

Program by activities:
Business development activities ...................................

480

300

300

10.00

105,361

Total obligations (object class 25.2) ........................

480

300

300

21.40

Financing:
Unobligated balance available, start of year: Treasury
balance ......................................................................

–62

–67

–67

SMALL BUSINESS ADMINISTRATION
24.40
68.00

Unobligated balance available, end of year: Treasury
balance ......................................................................
Budget authority (gross): Spending authority from
offsetting collections ............................................

Relation of obligations to outlays:
Total obligations ............................................................
Obligated balance, start of year: Unpaid obligations:
Treasury balance .......................................................
74.40 Obligated balance, end of year: Unpaid obligations:
Treasury balance .......................................................
71.00
72.40

87.00

Outlays (gross) ..........................................................

Adjustments to gross budget authority and outlays:
88.40 Offsetting collections from: Non-Federal sources .........
89.00
90.00

1999
67

67

67

210

210

210

5

5

5

5

5

5

5

5

300

2999

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

215

205

205

205

480

300

300

3999

Total net position ................................

215

205

205

205

159

144

48

4999

Total liabilities and net position ........

220

210

210

210

–144

–48

–48

495

396

300
ADMINISTRATIVE PROVISIONS—SMALL BUSINESS ADMINISTRATION

–485

–300

–300

Statement of Operations (in thousands of dollars)
1993 actual

1994 actual

0101
0102

Revenue ...................................................
Expense ....................................................

540
–540

480
–480

300
–300

300
–300

0109

Net income or loss (–) .......................

..................

..................

..................

..................

1995 est.

1996 est.

1995 est.

1996 est.

Balance Sheet (in thousands of dollars)

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................

220

300

This fund is used for the receipt of monetary gifts and
expenditures by the Agency in conjunction with its Business
Development program and Section 8(a) activities.

Identification code 73–8466–0–8–376

Total assets ........................................
LIABILITIES:
2201 Non-Federal liabilities: Accounts payable

485

Budget authority (net) ................................................... ................... ................... ...................
Outlays (net) ..................................................................
10
96 ...................

Identification code 73–8466–0–8–376

931

Trust Funds—Continued

1993 actual

1994 actual

220

210

210

210

øSEC. 401. (a) Of the budgetary resources available to the Small
Business Administration during fiscal year 1995, $1,021,000 are permanently canceled.
(b) The Administrator of the Small Business Administration shall
allocate the amount of budgetary resources canceled among the agency’s accounts available for procurement and procurement-related expenses. Amounts available for procurement and procurement-related
expenses in each such account shall be reduced by the amount allocated to such account.
(c) For the purposes of this section, the definition of ‘‘procurement’’
includes all stages of the process of acquiring property or services,
beginning with the process of determining a need for a product or
services and ending with contract completion and closeout, as specified in 41 U.S.C. 403(2).¿
SEC. ø402¿ 401. Not to exceed 5 percent of any appropriation made
available for the current fiscal year for the Small Business Administration in this Act may be transferred between such appropriations,
but no such appropriation shall be increased by more than 10 percent
by any such transfers: Provided, That any transfer pursuant to this
section shall be treated as a reprogramming of funds under section
605 of this Act and shall not be available for obligation or expenditure
except in compliance with the procedures set forth in that section.
(Departments of Commerce, Justice, and State, the Judiciary and
Related Agencies Appropriations Act, 1995.)